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Memorandum, Department of Economics, University of Oslo >
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http://hdl.handle.net/10419/63029
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| Title: | | Unemployment duration, incentives and institutions: A micro-econometric analysis based on Scandinavian data  |
| Authors: | | Røed, Knut Jensen, Peter Thoursie, Anna |
| Issue Date: | | 2002 |
| Series/Report no.: | | Memorandum, Department of Economics, University of Oslo 2002,09 |
| Abstract: | | Based on a combined register database for Norwegian and Swedish unemployment spells, we use the ‘between-countries-variation’ in the unemployment insurance systems to identify causal effects. The elasticity of the job hazard rate with respect to the benefit replacement ratio is around -1.0 in Norway and -0.5 in Sweden. The limited benefit duration period in Sweden has a large positive impact on the hazard rate, despite generous renewal options through participation in labour market programs. Compulsory program participation seems to operate as a ‘stick’, rather than a ‘carrot’, and is therefore an efficienttool for counteracting moral hazard problems in the benefit system. |
| Subjects: | | Unemployment spells unemployment compensation non-parametric duration analysis |
| JEL: | | C41 J64 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Memorandum, Department of Economics, University of Oslo
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